S&P gives At Home loan B+, changes view

S&P said it affirmed its B+ issuer credit rating on At Home Group Inc. and revised the outlook to negative from stable.

At the same time, the agency assigned a B+ issue-level rating to the company's proposed $425 million first-lien term loan due in 2025. The 3 recovery rating indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a payment default.

S&P said it does not rate the company's $350 million ABL revolver due in 2022.

The company plans to issue the new term loan to refinance its existing term loan and repay a portion of outstanding ABL borrowings.

“The negative outlook reflects our expectation for higher capex at a time when we see increasing macro risks, including slower economic growth and tariff pressures that we expect could affect sales and margin for At Home's highly discretionary home décor products,” the agency said in a news release.

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